MINUTES OF THE COMMON COUNCIL MARCH 24, 2014 The regular meeting of the Hammond Common Council of the City of Hammond, Lake County, Indiana was held on March 24, 2014 in the Hammond City Council Chambers. Council President Michael Opinker presided. City Clerk Robert J. Golec facilitated. PLEDGE OF ALLEGIANCE was recited by all. ROLL CALL PRESENT: Markovich, Spitale, Venecz, Kalwinski, Uylaki, Higgs, Emerson, Hinojosa, Opinker ABSENT: None TOTAL: 9 PRESENTATION BY THE HONORABLE CONGRESSMAN PETER J. VISCLOSKY Congressman Visclosky - President, thank you very much and I do want to thank all of the members of the council, our clerk is here, chief executive officer is here, for the opportunity to briefly address you or relative to the expansion of the South Shore in Northwest Indiana. My preference in the time we have is also to address any questions you may have, any concerns that you may have. I do appreciate the invitation but as may have been communicated to the council office, I’m Vice Chair of the Congressional Steel Caucus, we have a hearing in Washington tomorrow morning at 8 a.m. and United Airlines waits for no one. So I will, unfortunately, have to depart at 7 p.m. I would begin simply by saying as a life long resident of Northwest Indiana, I look across our area and recognize, with the exception of our weather on occasion, there’s no place I’d rather live in the United States. We make more steel in two counties than any state in the nation. We have the largest inland oil refinery in the United States of America. Just about every east west rail line freight moves through Laporte, Porter and Lake County. Some of my colleagues in the United States Congress would love to have a second interchange in their Congressional District. We have cities in our communities that in some instances have four interstates. We are on the largest body of fresh water on the planet earth and we’re in the environs of one of the great city state of the world, the city of Chicago, who’s economy is larger than Sweden’s. But despite all of those advantages I would point out that since 1970 Lake County’s population has declined by 9.6%. The median household income for a person living in Lake County, Indiana has declined since 1970 by 15.25%. A person living in Lake County today is 43% older than they would have been in 1970. I attribute that to our children not staying, our children not coming back and our inability to attract new people and new young people to Northwest Indiana despite all of our advantages. Here’s a couple of threads to tie this all together. One is the recapturing of our lakeshore for open public use as Chicago did more than 100 years ago. The city of Hammond is a leader in that endeavor. In cooperation with the state and federal government you now have an incredible facility on the north end of the city, it’s called Wolf Lake. Not only the recreation it engenders but the economic it will attract to Hammond, Indiana. But I also believe part of that equation is the expansion of the existing of South Shore Rail Line. You have a great deal of economic vitality in the western, southern, and northern communities in the state of Illinois around that city state of Chicago. They also have well in excess of more than 400 miles of mass transit line. In Indiana we have 38, 38 that go to Michigan City and obviously we’re aware that the line extends itself to South Bend as well. The city of Chicago has a goal that by the year 2040 they want 75% of their residents to live Prepared by Robert J. Golec Hammond City Clerk 1 MINUTES OF THE COMMON COUNCIL cont. MARCH 24, 2014 PRESENTATION BY THE HONORABLE CONGRESSMAN PETER J. VISCLOSKY cont. Congressman Visclosky cont. - within walking distance of mass transit, bus or train. In essence, you think about the rail station in Chicago and you think about O’Hare. You could live in the city of Chicago and walk to any place in the world. We need to connect ourselves to that transit system so we could say the same for citizens in Northwest Indiana and to grow our economy. I told audiences repeatedly that our nation has grown in population by more than 50% since 1970. Our population has declined by 9.6%. You have to work hard every day to suppress population growth like that and we need to grow jobs and we need to grow our economy. The fact is, no taxes have to be raised. From my perspective what we really need to do is to return some of the taxes we’re sending to Washington, D.C. every day. The proposed expansion to Dyer, and ultimately I certainly have believed that the rail line should be expanded to Lowell as well as to Valparaiso, will cost somewhere between $571 to $615 million. That is not an inconsequential investment. But it also is an investment that will still be in existence in places like Hammond, and Munster and Lowell, and Hobart, a hundred years from now. Half of the funds would be a match from the federal government. Every time any of us would buy gasoline in this country we pay a federal gasoline tax part of which helps other communities build out their mass transit systems. We ought to return some of those monies. There was a commitment by the Development Authority, not without controversy, the state has committed an additional $4 million to the RDA for this. We need to raise, in Lake County, $8 million. The county executives, the commissioners, and the council people all have enacted a tax as of last year, .25, ¼ of that tax is for economic development. I can’t fully appreciate, although we have our budget concerns in Washington, the financial stress you are under and have been under. That have only been exacerbated because of the terrible winter we have had as far as overtime and filling pot holes and other services that you need to provide to your citizens. I understand that but there’s two ways to anticipate making sure we have enough revenue to take care of their needs and the next generations need in Hammond and that’s to invest in our economic infrastructure to grow that tax base. The immediate value, because that income tax is payed into a pot in Lake County. It is for to be distributed for all of the communities for further economic development. When I stand here today I take note of the fact that we have been at this endeavor, if you would, for 27 years. I happily point out it started in this room. It was a member of the Hammond City Council in 1987, Janet Moran, who first proposed that the right of way that is now been secured with the cooperation of the city of Hammond be secured for the expansion of mass transit. After the passage of a generation I can think of no better place in Northwest Indiana to close that loop. I would suggest, because we have a deadline of March 31st, for communities to make a decision that this is the time to act as you and the administration make a decision as to the commitment and allocation of those new tax revenues. I told people sacrifice is that of Brendan Marrocco who lost all four limbs in Iraq serving in the United States Army, that’s sacrifice. There’s no question, you’re pinched financially, but the question before you is an allocation of resources. With the deadline looming and communities making commitments, Schneider, Schneider, Indiana, population 277. As far away as you can get from the South Shore and still be in Lake County, is making a commitment tonight. Is as Winston Churchill said after the battle of El Alamein, “Now is not the end of this endeavor. It is not even the beginning of the end.” But perhaps Hammond could lead us to the end of the beginning and begin this important endeavor. With that, again, Mr. President, I appreciate the opportunity and would avail myself with any questions or comments you have. Councilman Higgs - Certainly, Congressman Visclosky, I appreciate your efforts in regards to addressing the needs of the region. Certainly I would like to have at least a feasability study as to how much revenue would be Prepared by Robert J. Golec Hammond City Clerk 2 MINUTES OF THE COMMON COUNCIL cont. MARCH 24, 2014 PRESENTATION BY THE HONORABLE CONGRESSMAN PETER J. VISCLOSKY cont. Councilman Higgs cont. - needed to fund this project as it relates to Hammond. You say Schneider, who has a population of 277 has committed to this endeavor but how will the other communities that have not signed off, how will it effect them and how much money will be needed to make this become a reality is my question. Congressman Visclosky - Councilman, I have that, and I left it ..... Essentially the total investment for the creation of the line is, again, between $571 to $614 million. Construction would start no later than 2020 and the first train would run by 2023. The importance (unclear) to beginning now because for those 7th graders in Hammond, they’ll be getting out of college in nine years. As far as the financing of the bond issue, again, we’re looking for half the money to be matched by the federal government.